Consumer Tips

Gift Cards and Prepaid Purchase Cards

According to regulations introduced by the government of British Columbia, prepaid purchase cards (which include gift cards and gift certificates) issued or sold after November 1, 2008 will not be allowed to have expiry dates or fees except in certain circumstances.

Consumers and businesses should be aware of the following important information;

PERMITTED EXPIRY DATES

Expiry dates are allowed in the following circumstances:

-For cards issued or sold for charitable or promotional purposes.

-For cards issued or sold for a specific good or service.

FEES

Fees are permitted for:

-Personalizing a card, for example with the consumer's picture.

-Replacing a lost or stolen card.

-Cards that may be used at multiple unaffiliated sellers, which is commonly known as mall cards.

Additonal information on fees:

Q. Why are fees permitted for replacing a card or customizing a card?
A. Retailers are providing an additional service or convenience over and above the value of the card itself. Businesses also need to recover the costs of providing these extra services.

Q. Why are mall cards allowed to charge fees?
A. There are extra costs involved with processing cards that can be used at multiple unaffiliated sellers, for example several stores in a mall. Without fees, it is likely that some mall cards would be discontinued. Mall card issuers must make purchasers aware that extra fees apply, so that purchasers can make informed decisions about the purchase. If a post-purchase fee applies, information about the fee must be included on the card itself. This will remind the consumer to use the card before post-purchase fees begin, no earlier than 15 months after purchase. At the request of the consumer, post-purchase fees can be delayed for an additional three months.

Q. What fees can be charged for a mall card?
A. Mall cards can charge the following fees:
A fee of up to $1.50 at the time of purchase.
If there is a balance remaining on the card 15 months after purchase, a post-purchase fee of up to $2.50 per month may be deducted from the balance. A consumer may request a three-month extension before the fees are charged.

Q. What happens if I am charged a fee that is not permitted?
A. A consumer that is charged fees that are not permitted should ask the business for a refund of fees. If the issue is not resolved, the consumer can make a request in writing to the business for return of the fees. Consumers should keep any paperwork showing fees, such as receipts.

DISCLOSURE

Businesses must disclose the following information when the card is purchased in a manner that is likely to bring it to the attention of the purchaser:

-All restrictions, limitations, terms and conditions on the use, redemption or replacement of cards, including any permitted fees or expiry dates.

-How a consumer can obtain more information, including any remaining balance.

-Please note that government has indicated that cards with credit card branding or logos as well as phone cards are exempt from this regulation.

This legislation is enforced by Consumer Protection BC (CPBC). Consumers are encouraged to contact the business directly to resolve any issues. If the problem can't be resolved, please contact the CPBC Inquiry Centre toll free at 1-888-564-9963 or email info@bpcpa.ca.